Document background
A Formal Engagement Letter is a critical business document used in the Australian professional services context to formally establish and document the terms of a professional engagement. It is typically used when a professional service provider, such as a consultant, lawyer, accountant, or advisor, begins a new client relationship or project. The document serves multiple purposes: it defines the scope of work, establishes fee arrangements, sets expectations, and provides legal protection for both parties. The engagement letter must comply with Australian legal requirements, including the Australian Consumer Law, Privacy Act, and relevant professional standards legislation. It should be drafted with consideration of state-specific requirements while maintaining professional standards and best practices. The document is essential for risk management, professional compliance, and establishing clear communication channels between the service provider and client.
